The ordinance passed requires Interim City Manager Scott Stiles to negotiate a consent decree with a group of employees suing the city in federal court over cuts in cost-of-living increases for employees who have yet to retire that were passed by the previous City Council.

Cranley hopes that U.S. District Judge Michael Barrett will be able to include all city employees and retirees in the lawsuit and make it a mandatory class-action lawsuit. If Barrett is successful, all employees would be bound by the solution negotiated in court.

The ordinance allows Stiles to negotiate the following changes:

For retirees‚ cost-of-living increases to their pension could not exceed 3 percent simple interest. The current interest rate is 3 percent compounded interest. Compounded interest rates in pensions are a key driver of increased costs to governments across the country.

COLAs would be frozen for up to five years for current retirees and for a five-year period upon retirement for city workers who have yet to retire.

The city would take up to $100 million from the Cincinnati Retirement System's health care trust fund to stabilize the pension system. Retiree health care benefits would have to be reduced.

While the vote was unanimous, some council members wanted the city manager to be able to negotiate the city's overall contribution rate as a percentage of its payroll. An amendment allowing him to do so failed on Monday, with council members who most often find themselves at odds with the mayor - Yvette Simpson, P.G. Sittenfeld, Chris Seelbach and Wendell Young - voting in favor of it.

"There's a real possibility where we're giving up less than the employees," Simpson said.

Councilman Christopher Smitherman said he wants to pursue reducing the fees paid to outside managers of the pension fund.

"It would be incredibly helpful if we could bring down that cost by $2 million or $3 million a year," Smitherman said.

Councilman P.G. Sittenfeld said council took the action it did reluctantly.

“This is bitter medicine to take, and my hope is that as best as possible, we'll learn from the past to not reach this point again in the future," he said.